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XL TechGroup, Inc. (XLT)


Tuesday 09 January, 2007

XL TechGroup, Inc.

Mezzanine borrowing facility

XL TechGroup, Inc.
09 January 2007

Press Release                                                    9 January 2007

                               XL TechGroup, Inc.

                       ('XL TechGroup' or 'the Company')

        XL TechGroup secures US$20 million mezzanine borrowing facility

XL TechGroup (AIM: XLT), the systematic architect and builder of an ongoing
stream of high value new companies, announces that it has arranged a mezzanine
borrowing facility of US$20 million with Laurus Master Fund Ltd ('Laurus'), a
New York based institutional equity fund that specialises in making direct
investments in growing public companies.  This facility is in addition to the
US$35 million facility previously arranged with Laurus that was announced on 3
January 2006, and is a result of the growing strategic relationship between XL
TechGroup and Laurus.

The facility, secured against XL TechGroup's assets, is due for repayment in
three years and has a variable interest rate, being the US Prime Rate, which is
currently 8.25 per cent per annum, plus an up-front, one-off facility
arrangement fee of 3.65 per cent.  At XL TechGroup's election, Laurus is also
entitled, on an annual basis, to receive either cash or shares in XL TechGroup's
companies or in XL TechGroup itself, with a value equivalent to 13 per cent of
the outstanding principal under this facility at the time.  There are no
conditions that would require XL TechGroup to provide additional security in the
event of a fall in the Company's share price, or to surrender any shares, save
for a loan default, and XL TechGroup has a pre-payment option without penalty.

XL TechGroup's stated business strategy, which has been successfully developed
over fourteen years, is to achieve periodic large-scale liquidity events from
the managed sale of its interest in XL TechGroup companies.  These events occur
when XL TechGroup believes it has achieved the best mix of a strong valuation
for each company and sufficient further upside for new shareholders.  In the
meantime, XL TechGroup raises working capital funds by leveraging these Company
assets to secure reliable, cost-effective financing for the development and
scaling needs of both existing XL TechGroup companies and future prospects in
the pipeline.

As a further demonstration of the growing relationship with Laurus, XL
TechGroup's portfolio company, AgCert International plc (LSE: AGC), announced on
5 January 2007 the completion and funding of a senior, secured US$25 million
debt facility provided by Laurus.

John Scott, Chief Executive Officer of XL TechGroup, said: 'We are delighted to
have secured this additional, competitively priced funding from Laurus, who
share our excitement about XL TechGroup's future.  These funds will enable us to
continue the development of our companies, including the recently announced
QuoNova, as well as further opportunities in our pipeline, without having to
sell AgCert shares in the market when we believe they are currently
significantly undervalued, and without having to dilute existing shareholders.'

                                    - Ends -

For further information:
XL TechGroup Inc.
John Scott / Harold Gubnitsky                              Tel: +1 321 409 7403
[email protected]                               
Chris Munden, Director of Investor Relations          Tel: +44 (0) 20 7398 7720
[email protected]

XL TechGroup media enquiries:
Abchurch Communications
Heather Salmond / Gareth Mead                         Tel: +44 (0) 20 7398 7700
[email protected]             


About XL TechGroup

XL TechGroup is in the business of significant value creation.  Working with
major international corporate and technology partners such as AES, Procter &
Gamble and leading universities, XL TechGroup first identifies global unmet
market needs and then targets and exploits these by the systematic creation of
successful, disruptive technology businesses.  These are built from scratch, and
are then funded and developed by XL TechGroup through to the point of a trade
sale or a stock market listing.

XL TechGroup's unique and proven methodology selects the best opportunities in
order to create one-to-two new companies annually, where each company is
expected to achieve a valuation of at least US$400 million within four years
from its creation.  While an XL TechGroup company might perform a stock market
listing at an earlier point in this four year timeframe, XL TechGroup would
retain its controlling interest and would continue to assist with the company's

XL TechGroup's companies to date are: AgCert International plc (,
TyraTech LLC (, DxTech LLC (, PetroAlgae LLC and
QuoNova LLC.

XL TechGroup has also established GenXL LLC as a joint venture to capture the
value of those prospects that do not quite meet the US$400 million, four year
criteria but still demonstrate considerable potential worth.  Over and above XL
TechGroup's core business model, GenXL will review a significant flow of
opportunities from both XL TechGroup and GEN3 in order to generate new
companies, standalone product lines and technology licensing opportunities or an
appropriate mix of these.

For further information, see

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                                                  

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